India’s Renewable Power Generation Crosses 100 Billion Units in a Quarter as Coal Stocks Decline
India has achieved a significant milestone in its energy transition with renewable electricity generation crossing 100 billion units (BU) in a single quarter for the first time. However, declining coal stocks at thermal power plants highlight the continuing challenge of maintaining energy security amid rising electricity demand, according to a report by the Centre for Research on Energy and Clean Air (CREA).
Renewable Generation Reaches Record Levels
According to CREA’s quarterly energy assessment for the second quarter of FY2026–27 (July–September 2026), India’s total electricity generation increased 11% year-on-year to 536 BU. Renewable electricity generation, excluding large hydropower, reached 101 BU while combined non-fossil generation—including renewables, hydropower and nuclear energy—rose to a record 177 BU.
Solar power emerged as the fastest-growing major source with generation increasing 39% year-on-year to 51 BU. Wind generation rose 29% to 45 BU. Solar power accounted for approximately 10% of India’s total electricity generation during the quarter, reflecting its growing role in meeting daytime demand.
Coal Stock Shortages Raise Energy Security Concerns
Despite the expansion of renewable power, coal and lignite continued to account for approximately 66% of electricity generation. Coal consumption at power plants remained around 79 million tonnes per month while supplies failed to keep pace.
By September 30, coal stocks at power plants had declined to 21 million tonnes, equivalent to just 36% of the normative requirement of 58 million tonnes. The number of plants holding stocks below 25% of their prescribed requirement also increased significantly, signalling pressure on the coal supply chain.
India’s peak electricity demand reached a record 270 GW on July 16, 2026, underscoring the growing requirement for reliable power supply.
Grid Infrastructure and Energy Storage Become Critical
The report also highlights the need to strengthen transmission infrastructure and energy storage. Around 1,835 million units of renewable electricity were curtailed during July and August because of grid and operational constraints even as electricity demand remained elevated.
India’s installed power capacity reached 555 GW by August 2026, with non-fossil sources accounting for approximately 55% of total capacity. Renewable capacity additions also outpaced thermal additions during the quarter, at around 7 GW compared with 0.8 GW.
Governance and Policy Implications
The latest figures underline a critical energy governance priority: expanding renewable generation must be accompanied by reliable transmission networks, adequate coal logistics and scalable storage systems. Battery storage and pumped hydro can help balance fluctuations in solar and wind generation, particularly during evening and nighttime demand peaks.
For policymakers, the challenge is to ensure that new power capacity aligns with projected demand, grid readiness and the availability of storage. Better coordination between generation, transmission and fuel supply will be essential to reduce renewable energy wastage, strengthen energy security and support India’s long-term clean-energy transition.
